HK average wage rate rises 0.2 pct in real terms

The overall average wage rate in Hong Kong for all the major sectors surveyed taken together rose by 0.2 percent in real terms in March 2004 over a year earlier, according to official statistics.

According to the figures released by the Census and Statistics Department Tuesday, the above-mentioned figure resulted after discounting the decrease in consumer prices as measured by the Consumer Price Index.

While the average wage rate for all the major sectors surveyed taken together, as measured by the wage index, fell by 1.6 percent in nominal terms in March 2004 over a year earlier.

The result was similar to the decrease of 1.5 percent in December 2003.

About 48 percent of the companies surveyed reported some decrease in average wage rates in March 2004 over a year earlier, mainly attributable to cuts in basic salaries and guaranteed year-end double pay.

On the other hand, 37 percent of the companies surveyed recorded some increase in average wage rates over the same period. This was mainly due to retrenchment of lower-paid clerical staff and operatives, leading to a rise in the proportion of relatively higher-paid workers over a year earlier.

The remaining 15 percent was almost no change in average wage rates.

As for payroll, the index of payroll per person engaged for all the major sectors surveyed taken together likewise decreased by 1.7 percent in nominal terms in the first quarter of 2004 over a year earlier. This was larger than the decrease of 1.0 percent in the fourth quarter of 2003, which mainly reflected the reduction in payroll by some government-subvented organizations in the community, social and personal services sector, to follow in steps with the civil service pay cut effective as from January 2004.

After netting out the effect of the decrease in consumer prices as measured by the Composite Consumer Price Index, average pay rollper person engaged increased slightly by 0.1 percent in real terms in the first quarter of 2004 over a year earlier, according to statistics.

Source: Xinhua